USD/JPY Price Analysis: Bullish daily flag breakout is underway

USD/JPY bulls taking control as the US dollar soars.
The prior series of bullish flags are encouraging for the current price action.

Ross J Burland FXStreet

USD/JPY is on the verge of a bullish breakout according to the daily and hourly chart's structures and price action. The following illustrate the bullish bias across the aforementioned time frames:

USD/JPY daily charts

The price has been making a series of higher highs following a bull flag breakout within the bullish US dollar cycle as illustrated above.

In the current bull flag breakout, we can see that the price corrected to as far as 61.8% Fibonacci ratio and has rallied from prior resistance. This offers conviction to the breakout.

However, the bulls now need to clear hourly resistance:

USD/JPY H1 chart

The price is attempting to break clear of the bear's commitments at resistance. The 38.2%, 50% and 61.8% ratios align with the prior resistances on the hourly time frame that could act as support and lead to a surge higher in order to challenge the daily highs for the sessions ahead:

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD pops to three-week highs above 1.3400

GBP/USD accelerates its advance and surpasses the key 1.3400 barrier on Wednesday. That said, Cable clinches new multi-week tops on the back of the resurgence of the selling interest in the Greenback despite persistent tensions in the Middle East.

EUR/USD reverses losses, targets 1.1450

EUR/USD trades with decent gains north of the 1.1400 hurdle in the latter part of Wednesday’s NA session. The fresh offered stance in the US Dollar allowed the pair to revert the initial drop and refocus on the upside despite the hawkish tone from the FOMC Minutes and persistent geopolitical tensions.

Gold trims losses, looks at $4,100

Gold manages to regain some composure and bounce off earlier lows on Wednesday. The precious metal now shifts its focus to the $4,100 mark per troy ounce amid decent losses in the US Dollar and steady geopolitical jitters.

Dogecoin Forecast: DOGE risks sliding below $0.07 despite returning retail interest

Dogecoin (DOGE) edges lower toward support at $0.07 at the time of writing on Wednesday. The meme coin reflects a broader sell-off in the crypto market, primarily attributed to uncertainty over tensions in the Middle East. Iran launched attacks on American military bases in the Middle East on Wednesday in retaliation for attacks by the United States (US) on several places in Iran.

2.50%: Why the Kiwi's first hike in three years is a wager on a number nobody can see

The Reserve Bank of New Zealand (RBNZ) raised the Official Cash Rate (OCR) by 25 basis points to 2.50% at 02:00 GMT on Wednesday, its first hike in three years and the moment the bank that cut deeper than any G10 peer last cycle turned to face the other way.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.